VERICEL CORP (NASDAQ:VCEL) – A Strong Growth Stock with a Technical Setup

VERICEL CORP (NASDAQ:VCEL) was identified by our screener as a strong growth stock with a favorable technical setup. The company operates in the biotechnology sector, specializing in advanced therapies for sports medicine and severe burn care. Below, we examine why VCEL stands out based on its fundamentals and recent price action.

Growth Potential

• Revenue Growth: VCEL reported a 20.1% year-over-year revenue increase, with a five-year average growth rate of 15.01%. Future revenue is expected to grow at 24.77% annually.
• Earnings Expansion: Earnings per share (EPS) surged by 400% in the past year, with projected annual EPS growth of 72.04% in the coming years.
• Industry Position: The company holds a strong position in its niche, with products like MACI and Epicel addressing significant medical needs.

Profitability & Valuation

• High Margins: Gross margins stand at 72.55%, outperforming 82.38% of industry peers. Operating and profit margins also rank well within the sector.
• Reasonable Valuation: Despite a high P/E ratio, VCEL trades at a discount compared to industry averages on forward earnings and enterprise value multiples.

Technical Setup

• Consolidation Phase: The stock has been trading in a range between $37.39 and $44.41, showing reduced volatility.
• Support Levels: Key support lies near $38.60-$38.94, providing a potential entry point with a stop-loss below this zone.
• Resistance Breakout: A move above $41.74 could signal further upside, with the next resistance near $43.08-$44.32.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria.
For a deeper analysis, review the full fundamental report and technical report.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.